Kensey Nash and St. Jude Medical have entered a settlement agreement to resolve claims pertaining to Angio-Seal vascular closure device licenses.
Under the terms of the agreement, the companies will lengthen their collagen supply agreement through 2017. Kensey Nash will still be an exclusive supplier of collagen for the Angio-Seal devices through 2017, and the company estimated the value of the orders under the supply agreement to be $31 million over the five-year extension.
Kensey Nash will receive $39 million under the settlement agreement, which St. Jude will pay in 12 equal quarterly payments beginning March 31, 2012. These payments will be in lieu of all future royalties for the Angio-Seal device, according to Exton, Pa.-based Kensey Nash.
The company will recognize the $39 billion as royalty revenue beginning January 2012 through April 2014, the expiration date of the last patents licensed by Kensey Nash to St. Jude.